Bridgestone 2003 Annual Report Download - page 7

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Automakers are opting for high-performance tires on a
growing range of vehicle models. Bridgestone Group tire
plants provide locally produced solutions for a broad
spectrum of high-performance needs.
Six straight championships by Bridgestone-equipped F1
teams underline the Bridgestone edge in performance.
That edge is also evident in Champ Car and IndyCar racing,
where the Bridgestone Group is the exclusive tire supplier.
Another strength for us in the high-performance sector is geographical reach. Bridgestone
Group companies have invested in production systems for manufacturing high-performance
tires in North America, Europe, and other markets in addition to Japan. That helps us to provide
automakers and consumers with consistently cost-competitive products in this sector.
Augmenting our strength in high-performance tires is our global development network.
Technical centers operated by our Americas and European subsidiaries in
Akron and Rome interact closely with our technical center in Tokyo and
with each other. That helps us fine-tune our development effort to high-
performance needs in each market. Developing high-performance tires for
the European market is Bridgestone Europe’s primary purpose in building
a proving ground—its second—in Italy. That proving ground will open near
Rome in 2004.
Results
High-performance tires are a prime emphasis in our strategy for improv-
ing our sales mix. Our success in fulfilling that emphasis is evident in the
growing proportion of Bridgestone-brand sales at our North American
and European subsidiaries. That growth is due in large part to sales gains
in high- and ultrahigh-performance tires. It also reflects increasing sales
of large tires for sport-utility vehicles and of Blizzak snow tires under the Bridgestone brand. In
the original equipment sector, nearly all the world’s manufacturers of high-performance and
ultrahigh-performance cars use Bridgestone-brand tires.
A further indicator of our progress in promoting high-performance tires is average value per
unit sold. Our North American, European, and Japanese sales in dollars, euros, and yen outpaced
unit sales significantly in 2003. Growth in high- and ultrahigh-performance tires was an impor-
tant reason for that positive disparity.
Outlook
The shift in demand toward high-performance tires in the industrialized nations shows every
sign of continuing for the foreseeable future. As the industry’s high-performance leader, we stand
to benefit more than our competitors from that trend. Production improvements—especially
in Japan and Europe—are helping us make the most of our competitive edge in this product
category.
Meanwhile, our continuing success in Formula One racing—the world’s most-watched
motorsport series by far—highlights our identity as the high-performance leader. Acquainting
consumers with our high-performance edge will remain the dominant theme in our product
advertising and other promotional activities.
Computer simulations of hydroplaning exemplify the
advanced technologies that Bridgestone deploys in pur-
suit of better tires. Leading that pursuit is the company’s
flagship technical center in Tokyo.
2003 ANNUAL REPORT
Bridgestone Europe adopted
a bold strategy of focusing
its sales efforts on high- and ultrahigh-
performance tires and on other high-value
products. That initiative rewarded the company
with strong sales gains in the replacement
sector and in original equipment. Our brand
image in Europe benefited from the continuing
success of our tires in F1 racing.
2003
HIGHLIGHTS